Chubb Insurer Settles Pa. Federal Reinsurance Action

PHILADELPHIA — A Chubb insurer has settled a lawsuit in which it demanded reimbursement from RLI Insurance Co. under a facultative reinsurance agreement for an underlying settlement of asbestos claims filed against automotive parts manufacturer Echlin Inc.

Pacific Employers Insurance Co. (PEIC) filed a notice of voluntary dismissal on July 6 in the U.S. District Court for the Eastern District of Pennsylvania. . PEIC issued two one-year excess blanket catastrophe liability policies to Echlin, effective between Sept. 1, 1981 to Sept. 1, 1983. Both policies stated that, upon exhaustion of underlying limits, PEIC is obligated to defend Echlin. The policies …